The following data relate to the Prima Company 1 Exhibit

The following data relate to the Prima Company.(1) Exhibit 3.10: Balance sheet at December
31, Year 8.ASSETSCash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. $
10,000Marketable Securities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000Accounts
Receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000Merchandise Inventory. . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . 30,000Prepayments for Miscellaneous Services . . . . . . . . . . . . . . . .
3,000Total Current Assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. $ 88,000Land, Buildings,
and Equipment (at cost) . . . . . . . . . . . . . . . $ 40,000Less Accumulated Depreciation . . . . . . . . .
. . . . . . . . . . . . . . (16,000)Land, Buildings, and Equipment (net) . . . . . . . . . . . . . . . . . . . $
24,000Total Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $112,000LIABILITIES
AND SHAREHOLDERS’ EQUITYAccounts Payable (for merchandise). . . . . . . . . . . . . . . . . . . .
$ 25,000Interest Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300Taxes Payable . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,000Total Current Liabilities . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . $ 29,300Note Payable (6%, long-term). . . . . . . . . . . . . . . . . . . . . . . . . 20,000Total
Liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. $ 49,300Common Stock . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . ... $ 50,000Retained Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . 12,700Total Shareholders’ Equity. . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 62,700Total
Liabilities and Shareholders’ Equity . . . . . . . . . . . . . $112,000(2) Exhibit 3.11: Statement of net
income and retained earnings for Year 8.Sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . $200,000Less Expenses:Cost of Goods Sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$130,000Depreciation Expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,000Taxes Expense . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,000Other Operating Expenses. . . . . . . . . . . . . . . .
. . . . . . . . . . . . 47,700Interest Expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,200Total
Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $190,900Net Income . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . $ 9,100Less Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . 5,000Increase in Retained Earnings . . . . . . . . . . . . . . . . . . . . . . $ 4,100(3) Exhibit 3.12:
Statement of cash receipts and disbursements for Year 8.Cash ReceiptsCash Sales . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 47,000Collection from Credit Customers . . . . . . . . . . .
. . . . . . . . . . . . 150,000Total Receipts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$197,000Cash DisbursementsPayment to Suppliers of Merchandise . . . . . . . . . . . . . . . . . . . .
$128,000Payment to Suppliers of Miscellaneous Services . . . . . . . . . . . 49,000Payment of
Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,500Payment of Interest. . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . 1,200Payment of Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5,000Purchase of Marketable Securities . . . . . . . . . . . . . . . . . . . . . . . 8,000Total
Disbursements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $198,700Excess of Disbursements
over Receipts . . . . . . . . . . . . . . . $ 1,700Purchases of merchandise during the period, all on
account, were $127,000. All OtherOperating Expenses were credited to Prepayments. Prepare
a balance sheet for December 31, Year 7. View Solution:
The following data relate to the Prima Company 1 Exhibit
SOLUTION-- http://solutiondone.online/downloads/the-following-data-relate-to-the-prima-
company-1-exhibit/

Unlock answers here solutiondone.online

Powered by TCPDF (www.tcpdf.org)